FB: Southern Athletic Association

[Ralph Turner]

I pulled out a pro forma for a typical capital campaign for $100M recommended by a professional consultant. Here is how you would raise $100M

Number of donors        Gift             Cumulative Total
1                             $20M                  $20M
1                              $10M                 $30M
1                               $5M                   $35M
3                                $3M                  $44M
4                                $2M                  $52M

Find those 10 people and you are halfway.

15                               $1M                  $67M   
30                                $500K              $82M

There you have 80% of your goal in 55 people

40                               $200K               $90M
50                               $100K               $95M
75                                $50K                $98,750,000

The next 165 almost put you over the top.   

Double those gifts or double the donors at each level and you have $200M.

[SagatagSam]

State may provide a secured loan (and allow other colleges to take out similar loans) in lieu of outright funding:

https://www.al.com/news/2023/04/alabama-house-speaker-says-loan-possible-for-birmingham-southern.html

A secured loan is not crazy from a political perspective. Legislators and the Governor can sell it to the BSC community as being heroes swooping in to "save the day" right now, and then if (when?) things go belly up, those same politicians can tell the taxpayers, "Our budget is fully solvent, ya'll, because we secured this loan so we will be made whole."

Though from BSC's perspective, giving the collateral for a loan is a very risky bet and the non-profit equivalent of a "Hail Mary" play. Perhaps its enough to get them through another 1-5 years--maybe. My guess is its probably a play to try and get them past the 2026 demographic cliff, hope there are many other schools that close prior to BSC's insolvency, and hope that BSC surviving those prior closures cause enough correction in the higher education market that enrollment starts going back up.

[BSCpanthers]

For a break from the budget and finance talk, BSC started spring practice this morning.  It will be interesting to see the changes on the field with our previous HC now at Austin and Colucci, our OC taking over as HC.  We have some other changes on the coaching staff as well as change in player personnel.  Of course we have the usual attrition and some that have transferred due to the uncertainty of BSC. 

Doesn't matter the changes, the goal is still the same, and week 3 will be a big one as we host Trinity. 

[UMHB03]

For a break from the budget and finance talk, BSC started spring practice this morning.  It will be interesting to see the changes on the field with our previous HC now at Austin and Colucci, our OC taking over as HC.  We have some other changes on the coaching staff as well as change in player personnel.  Of course we have the usual attrition and some that have transferred due to the uncertainty of BSC. 

Doesn't matter the changes, the goal is still the same, and week 3 will be a big one as we host Trinity.

Has BSC released their schedule yet?

[BSCpanthers]

For a break from the budget and finance talk, BSC started spring practice this morning.  It will be interesting to see the changes on the field with our previous HC now at Austin and Colucci, our OC taking over as HC.  We have some other changes on the coaching staff as well as change in player personnel.  Of course we have the usual attrition and some that have transferred due to the uncertainty of BSC. 

Doesn't matter the changes, the goal is still the same, and week 3 will be a big one as we host Trinity.

Has BSC released their schedule yet?

Yes

McMurry@Little Rock. TBA 8/31-9/2

Sep 9  @Huntingdon  6:00
Sep 16  Trinity. Time TBA
Sep 23  @Southwestern  1:00
Sep 30  Millsaps  4:00
Oct 7   @Sewanee   6:00
Oct 14  Hendrix  2:00
Oct 28  @Rhodes   1:00
Nov 4  Berry  6:00
Nov 12  @Centre  12:00

All times central

Also, we had 6 home games last year, 4 home games this season.  Just means we need to host a playoff game to get back to 5 this year.

[Ron Boerger]

Had some Delta frequent flyer miles to burn ... not so many any more as I booked a flight to MSP to take in the amazing scene in Collegeville the first Saturday in September.

[SagatagSam]

Had some Delta frequent flyer miles to burn ... not so many any more as I booked a flight to MSP to take in the amazing scene in Collegeville the first Saturday in September.

That's about as good of a use of frequent flyer miles as any in my opinion! Collegeville is a wonderful place to see a game. Of course, I'm biased because I'm a Johnnie. The Labor Day weekend game can be a hot one, so I'm sure there will be plenty of Hamm's flowing. There are a bunch of guys from the boards that tailgate before the games. I won't be there, but if you migrate over to the MIAC board and let them know, there will be plenty of hospitality headed your way.

[Ron Boerger]

Courtesy of D3Playbook, Inside Higher Ed's take on the BSC situation.  Nothing really new here; focuses on the still-undefined loan from the state as a bridge required to continue operations in the short term. 

[cush]

How about a 2 year $50 million interest free loan from the state  I've read  BSC endowment is around $25 million now and debt is around $35 million, not really sure.  A $50 million interest free  2 year loan loan from the state would eliminate all of BSC debt and give them $15 million excess to operate for the next 2 years. Set a 2 year $100 million fundraising goal of which $47 million is already pledged. If that goal can be achieved, pay the state back $50 million and put $50 million in the endowment in 2 years. The only other issue is how much deferred maintenance the school needs to pony up in the next 2 years. I guess they would have some cushion with all their debt paid off with the state loan. Obviously, if BSC can't raise the money the state would get the property in 2 years. Yet, the biggest issue with BSC is getting enrollment to at least 1200, preferably 1500 quick.

[jknezek]

How about a 2 year $50 million interest free loan from the state  I've read  BSC endowment is around $25 million now and debt is around $35 million, not really sure.  A $50 million interest free  2 year loan loan from the state would eliminate all of BSC debt and give them $15 million excess to operate for the next 2 years. Set a 2 year $100 million fundraising goal of which $47 million is already pledged. If that goal can be achieved, pay the state back $50 million and put $50 million in the endowment in 2 years. The only other issue is how much deferred maintenance the school needs to pony up in the next 2 years. I guess they would have some cushion with all their debt paid off with the state loan. Obviously, if BSC can't raise the money the state would get the property in 2 years. Yet, the biggest issue with BSC is getting enrollment to at least 1200, preferably 1500 quick.

Deferred maintenance is not the only issue. I suspect operating expenses outstrip revenue and I doubt a 2yr loan is going to be possible to pay back. They need that money to pay current expenses to keep the doors open, which means it's not going to be there to pay back in 2yrs. People are not going to donate to pay back the loan. You keep thinking people donate to cover these kids of expenses. They don't. They donate for the long-term. Especially the large dollar donors that B-SC needs to hit 100MM-200MM. 50MM for 10 or 30 years, even with a small interest rate, may make it possible. But not for 2 years. They need that 2yr money from the state as a grant to make it work as bridge funding, not as something they need to pay back.

Honestly, if they get 50MM for 2yrs, the only way they pay that back is to get someone to donate 50MM and have the campus named after them. Or maybe the whole dang school since that person is essentially saving it.

[Ralph Turner]

Deferred maintenance is not the only issue. I suspect operating expenses outstrip revenue and I doubt a 2yr loan is going to be possible to pay back. They need that money to pay current expenses to keep the doors open, which means it's not going to be there to pay back in 2yrs. People are not going to donate to pay back the loan. You keep thinking people donate to cover these kids of expenses. They don't. They donate for the long-term. Especially the large dollar donors that B-SC needs to hit 100MM-200MM. 50MM for 10 or 30 years, even with a small interest rate, may make it possible. But not for 2 years. They need that 2yr money from the state as a grant to make it work as bridge funding, not as something they need to pay back.

Honestly, if they get 50MM for 2yrs, the only way they pay that back is to get someone to donate 50MM and have the campus named after them. Or maybe the whole dang school since that person is essentially saving it.

+1!

[SagatagSam]

How about a 2 year $50 million interest free loan from the state  I've read  BSC endowment is around $25 million now and debt is around $35 million, not really sure.  A $50 million interest free  2 year loan loan from the state would eliminate all of BSC debt and give them $15 million excess to operate for the next 2 years. Set a 2 year $100 million fundraising goal of which $47 million is already pledged. If that goal can be achieved, pay the state back $50 million and put $50 million in the endowment in 2 years. The only other issue is how much deferred maintenance the school needs to pony up in the next 2 years. I guess they would have some cushion with all their debt paid off with the state loan. Obviously, if BSC can't raise the money the state would get the property in 2 years. Yet, the biggest issue with BSC is getting enrollment to at least 1200, preferably 1500 quick.

Deferred maintenance is not the only issue. I suspect operating expenses outstrip revenue and I doubt a 2yr loan is going to be possible to pay back. They need that money to pay current expenses to keep the doors open, which means it's not going to be there to pay back in 2yrs. People are not going to donate to pay back the loan. You keep thinking people donate to cover these kids of expenses. They don't. They donate for the long-term. Especially the large dollar donors that B-SC needs to hit 100MM-200MM. 50MM for 10 or 30 years, even with a small interest rate, may make it possible. But not for 2 years. They need that 2yr money from the state as a grant to make it work as bridge funding, not as something they need to pay back.

Honestly, if they get 50MM for 2yrs, the only way they pay that back is to get someone to donate 50MM and have the campus named after them. Or maybe the whole dang school since that person is essentially saving it.

I would have to imagine that the taxpayer funds would have to be approved sooner rather than later. Is there any movement on it? I know there are expressions of optimism, but that could be PR talk. The State Legislature has been in session for over a month now, and the session closes in mid-June.

[Ron Boerger]

Millsaps College head football coach Isaac Carter resigns to accept the defensive coordinator role at the University of San Diego. Assistant head football and offensive line coach Cory York has been named interim head coach of the Millsaps program.

I don't understand how you can do such a mediocre job (6-18 in last three seasons) in D3 and end up with a better paying position in D1.  I don't blame him for taking advantage of the chance, especially given the enrollment challenges the school faces (which certainly hinder having a successful program).

[jknezek]

Millsaps College head football coach Isaac Carter resigns to accept the defensive coordinator role at the University of San Diego. Assistant head football and offensive line coach Cory York has been named interim head coach of the Millsaps program.

I don't understand how you can do such a mediocre job (6-18 in last three seasons) in D3 and end up with a better paying position in D1.  I don't blame him for taking advantage of the chance, especially given the enrollment challenges the school faces (which certainly hinder having a successful program).

Who you know is more important than what you did. Carter came from a CC in California. Probably had connections with the USD staff. I'm too lazy to look it up, but it wouldn't surprise me. Plus being a head coach, vs being a coordinator, are two very different jobs. You can be really, really good at one, and less good at the other. How often do we see that happen in both college and pro ball?

[SagatagSam]

I was scrolling through Twitter and saw an interesting domestic migration map come up. I was thinking about this in the context of BSC's recent issues. It totally makes sense why they would do everything they can to stay open with the increasing population of the deep south. They've got a much better chance of surviving than a school in a similar situation in, say, New York, which is bleeding population like crazy.